BUSN 302.01 Fall 2017 Name 1. Fitzgerald Computers is considering a new project whose data are shown below. thieghtcline method over Exam-1 3-year tax life, after which it will be worthless, and it will be depreciated by t-year life. The required equipment has a years, Revenues and other operating costs are expected to be constant over ert cost is$65,000 and depreciated by the straight-line depreciation method ly The tax rate is 30% the straight-line method over 3 project's 3-year life. Equipment The project will increase sales project's Year l cash flow, decrease operating costs by S25 000 annually. Thetax rate is 30% What is the 2. DeVault Services recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated to $5,000 by the straight-line method over its 3-year life, and would have a $2,000 market value at the end of years 3. Additional new working capital of $3,000 would be required. The revenue will increase by S90 000 annually during the project life. The tax rate is 30%. What is the non-operating cash flow at the end of project life, year 3? Corporation is evaluating a project that costs $200,000, is expected to last for 10 years and produces aher-dax ansh fows including deprociation ss $200,000, is expected to s 12% and its tax rate is 40% what is the project's payback period? cost of capital is 12% and it